Costco Wholesale Corporation (COST), headquartered in Issaquah, Washington, operates membership warehouses globally. Valued at $469.8 billion by market cap, the company offers a diverse range of branded and private-label products, including groceries, electronics, appliances, and automotive supplies, along with pharmacies, optical centers, fuel stations, and travel services.
Shares of this discount stores giant have outperformed the broader market over the past year. COST has gained 46.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 20.7%. In 2025, COST stock is up 15.5%, surpassing SPX’s 3.2% rise on a YTD basis.
Zooming in further, COST’s outperformance is also apparent compared to VanEck Retail ETF (RTH). The exchange-traded fund has gained about 20.8% over the past year. Moreover, COST’s double-digit returns on a YTD basis outshine the ETF’s 7.2% gains over the same time frame.
COST's strong performance is fueled by its membership-driven model, efficient supply chain, bulk purchasing power, and membership fees, ensuring competitive pricing and steady revenue growth. With membership renewal rates surpassing 90% in key markets like the U.S. and Canada, the company benefits from strong customer loyalty and retention. Costco's disciplined approach to cost control and margin improvement, along with growing digital commerce initiatives, enhances profitability. Moreover, plans for new openings domestically and internationally position Costco for continued growth in the retail landscape.
On Dec. 12, COST shares closed down marginally after reporting its Q1 results. Its EPS of $4.04 surpassed Wall Street expectations of $3.80. The company’s revenue stood at $62.2 billion, up 7.5% year over year.
For the current fiscal year, ending in August, analysts expect COST’s EPS to grow 11.9% to $18.03 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last three quarters.
Among the 33 analysts covering COST stock, the consensus is a “Moderate Buy.” That’s based on 18 “Strong Buy” ratings, three “Moderate Buys,” and 12 “Holds.”
The configuration has been consistent over the past three months.
On Feb. 7, Evercore ISI analyst Greg Melich maintained a “Buy” rating on COST with a price target of $1070, implying a potential upside of 1.1% from current levels.
While COST currently trades above its mean price target of $1056.97, the Street-high price target of $1195 suggests an upside potential of 12.9%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.More news from Barchart
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